FICCI seeks liberalised FDI regime for retail

FICCI seeks liberalisation of FDI regime in retail along with industry status for the sector, which is expected to reach $430 billion mark by 2010.

Industry body FICCI on Sunday sought liberalisation of foreign direct investment (FDI) regime in retail along with industry status for the sector, which is expected to reach $430 billion mark by 2010.

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The Indian retailing industry is projected to attain a turnover of $430 billion by 2010 from the current $ 328 billion , a FICCI report on 'Organised Retail: Unfinished Agenda and the Challenges Ahead' said.

Organised retail, which accounts for only four per cent of the total market, is set to grow at 20-22 per cent and reach $ 90 billion mark by 2010, it added.

Currently, FDI up to 51 per cent is allowed in single brand retailing whereas multi-brand retailing is not open to foreign participation.

Foreign retail giants like Wal-Mart, Carrefour and Tesco are looking to enter the sector in India.

While releasing the report, FICCI Secretary General Amit Mitra said there should be one common market in the country and uniform VAT should be introduced in all states.

With regard to FDI limit, he said, the Indian Council for Research on International Economic Relations report on the retail market was expected to be out soon. Thereafter, the chamber would discuss the limit and other issues with the government, he added.

Asking for industry status for the sector, the chamber said goods and service tax (GST) should not exceed 20 per cent and excise duty should be cut to 14 per cent from 16 per cent at present.

FICCI also sought 100 per cent tax break for at least 10 years in case of cold chain infrastructure.